Pleasing revenue and earnings growth in the first quarter of 2019
Pleasing revenue and earnings growth in the first quarter of 2019
- Revenue increase of 5.4% to EUR 21.1 million
- EBITDA and operating EBIT grow overproportionately
- Further margin improvement targeted through already announced optimisation programme
- Dividend proposal of EUR 0.07 per share
Gelsenkirchen, 10 May 2019 - The Masterflex Group got off to a very good start in 2019 and increased its revenue by 5.4% from EUR 20.0 million to EUR 21.1 million in the first quarter of 2019. This positive course of business included in particular the non-European companies, the medical segment and the fluoropolymer segment. For example, the revenue development in China was very pleasing, while business in Great Britain was slightly dampened by the effects of the Brexit. In other important foreign markets such as the USA and Brazil, the development was also very satisfactory.
Dr. Andreas Bastin, CEO of Masterflex Group: "The development in the first quarter of 2019 has once again demonstrated the healthy dynamism of our core business. This also shows how important it is for us to have a broad international base. In Europe, we are currently slightly below our expectations in some areas, while developments particularly in the USA, Brazil and China are very positive. However, we are not satisfied with this overall good business performance and are therefore working intensively on a comprehensive optimisation programme for our entire Group, which we will present in summer 2019. Ultimately, the aim is to realise the existing potential of a double-digit EBIT margin, which several of our subsidiaries are showing on a permanent basis and which we as a Group have already been able to achieve in the past, on a sustainable basis despite the changed environment." Masterflex's central goal is to further increase the international growth dynamic by rolling out the entire product range even more consistently in the most important international markets, and to steadily expand its own position as an innovation and technology leader, as has recently been demonstrated by the new successes with the world's first digitally equipped hoses. At the same time, the own operational excellence is to be further developed and the focus on the optimisation of business processes is to be further strengthened. Dr. Andreas Bastin: "Our aspiration is to once again achieve a double-digit EBIT margin on a sustained basis. It is just as important to us that we press ahead with our measures, which are based on the most recent strategic decisions. We have already carried out extensive preparatory work, particularly in the area of digitisation and in the automation of our production, which will additionally secure our leading position in technology and market share."
Earnings position: stable earnings growth
In the first quarter of 2019, the Masterflex Group increased EBITDA by 7.5% from EUR 2.8 million to EUR 3.0 million. Operating EBIT also grew slightly overproportionately to revenue growth, rising by 5.8% from EUR 2.0 million to EUR 2.1 million. The EBIT margin was thus 9.8% (previous year: 9.8%). Consolidated net income rose by 4.8% to EUR 1.2 million.
Outlook: forecast for 2019 confirmed
For the 2019 financial year as a whole, the Masterflex Group has set itself the goal of growing at a comparable rate to 2018 and accordingly achieving revenue growth in the range of 3.0% to 6.0%. On the earnings side, Masterflex will focus in 2019 on measures for improved efficiency and additional economies of scale - with the aim of increasing operating EBIT year-on-year.
At the Annual General Meeting on 28 May 2019 in Gelsenkirchen, the Executive Board and Supervisory Board will propose to distribute a dividend of EUR 0.07 per share for the 2018 financial year.
Quarterly statement
The detailed quarterly statement 1/2019 can be found on the Internet at www.masterflexgroup.com/en/investor-relations/financial-reports/2019.html.
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